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Annual Report 2020-21
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Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2021
Note 10. Receivables (continued)
Other debtors: Council identifies other debtors as receivables which are not rates and charges or statutory charges. This
includes, but is not limited to, grants, property leases, respite services, venue hire, commercial waste charges and grants.
Disclosure - credit risk exposure and impairment of receivables
The maximum exposure to credit risk at balance date for receivables is the gross carrying amount of those assets. No collateral
is held as security.
Council uses a provision matrix to measure the expected credit losses on statutory charges and other debtors. Loss rates
are calculated separately for groupings with similar loss patterns. The calculations reflect historical observed default rates
calculated using credit losses experienced on past transactions from the last 6 years for each group. Loss rates are based on
actual credit loss experience over the past 6 years, current conditions and the Council's view of economic conditions over the
expected lives of the receivables. Council has determined there are three material groupings for measuring expected credit
losses based on a combination of their statutory status, Council's policies and procedures, sale of services and goods, and
risk default profiles of these revenue streams.
After reviewing macro economic conditions, Council reached the conclusion that forward looking conditions indicate that as a
result of the COVID-19 pandemic there is minimal potential for deviations from historically calculated ratios, and accordingly
no forward looking adjustments were made. Any potentinal impact is expected to be immaterial given the type and nature of
Council receivables.
Expected credit loss assessment
The Council uses an allowance matrix to measure the expected credit losses of trade receivables from individual customers,
which comprise a very large number of small balances.
Loss rates are calculated using a 'roll rate' method based on the probability of a receivable progressing through successive
stages of delinquency to write-off.
§Total§
2021 Historical Lifetime
Probability of Loss Given Expected Credit
Closing Balance Default Default Loss
Ageing $ '000 % % $ '000
Rates and Charges 4,537 0% 100% –
Statutory Charges and Other Debtors – – – –
Current 1,641 0% 100% 1
1-30 days 60 0% 100% –
31-60 days 32 0% 100% –
61-90 days 1,073 0% 100% 1
90+ days – 0% 100% –
Total 7,343 2
§Total§
2020 Historical Lifetime
Probability of Loss Given Expected Credit
Closing Balance Default Default Loss
Ageing $ '000 % % $ '000
Rates and Charges 5,006 0% 100% –
Statutory Charges and Other Debtors – – – –
Current 1,030 0% 100% 1
1-30 days 48 0% 100% –
31-60 days 43 1% 100% –
61-90 days (796) 0% 100% 4
90+ days – 0% 100% –
Total 5,331 5
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